XRP News: The long running legal dispute between the U.S. Securities and Exchange Commission (SEC) and Ripple executives over the nature of the world’s 6th largest crypto, XRP is yet to see the court decision. The attorney representing XRP holders in the lawsuit hits out at the commission over its legal outreach.
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US SEC Fighting With Wrong Claims?
In a recent Op-ed published on Bloomberg law, Attorney John Deaton slammed U.S SEC Chair, Gary Gensler over his approach toward crypto with the Howey Test. He mentioned that back in 1946, the U.S. Supreme Court issued a vital decision in SEC Vs Howey. The court laid out a specific definition of what constitutes a security.
The justices at that time wouldn’t have guessed how complex digital commerce be ahead, he added. Meanwhile, the SEC Chair holds his own idea of how cryptocurrency should be regulated today and it is taking it into a dangerous corner in the court. Read More XRP News Here…
As per the Howey Test, a transaction is a security if it is an investment of money, in a common enterprise, with a reasonable expectation of profit derived from the efforts of others.
In order to prove an investment contract a security, all three prongs of Howey must be satisfied. Earlier, Coingape reported that Ripple’s win against US SEC might upgrade Howey Test for Crypto.
XRP holders’ lawyer highlighted that the SEC for a long two years in the Ripple lawsuit is not arguing this. The commission is claiming that all sales of XRP have been and will be security ahead. The commission stretches to claim that the very nature of the digital asset is to be a security.
Also Read: Ripple’s New Prediction On End Date Of SEC Lawsuit
Deaton added that clear rules and regulations are to protect people. However, the SEC here is exploiting legal uncertainty about crypto. Gary Gensler is moving radically to redefine what constitutes an investment contract and a common enterprise.
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